Issues hang in balance as N.C. House to return next week

Published: Friday, August 15, 2014 at 6:09 p.m.

Last Modified: Friday, August 15, 2014 at 6:09 p.m.

The hopes of North Carolina keeping its competitive film incentive program and continuing with its popular historical preservation tax credits hung in the balance Friday as frantic end-of-session negotiations failed to overcome entrenched opposition to economic development programs from conservative Republicans.

The end result was a decision by the N.C. House to reconvene for two days next week, further extending what's supposed to be the General Assembly's "short" session, for more talks.

Considering the strong opinions on both sides, it isn't known if there is a middle ground.

A move supported by House Speaker Thom Tillis, R-Mecklenburg, to bring a conference bill that dealt primarily with economic development issues to the House floor was narrowly defeated late Friday afternoon. The move came after House members decided to modify the bill's language to better reflect the chamber's position.

The House has refused to approve legislation already passed by the Senate that would fund some economic development efforts, but pointedly doesn't include language to extend the state's film incentive and historic preservation tax credit programs.

But many Republicans said the revamped bill was still full of provisions and tied to other bills they didn't like. Some legislators also were upset that the language added to the bill hadn't been run by the Finance Committee first to gauge its impact on the state budget.

Wake County Rep. Paul Stam, one of the most powerful Republicans in the GOP-dominated House, called the bill – even with the recent House changes – a "turkey."

With the Senate showing little appetite to compromise and few bills left to add any language to regarding the film and historic preservation programs, supporters of the tax credit programs have been scrambling this week. Both incentive programs are set to expire at the end of the year, with the film incentives replaced with a $10 million grant program for the first six months of 2015 that proponents call woefully inadequate to keep North Carolina as a major player for film and television production work.

But it isn't just film jobs that Southeastern North Carolina could lose if the General Assembly can't agree on approving an economic development bill – something the GOP-led Senate and Gov. Pat McCrory, also a Republican, badly want.

The state needs funding included in the bill to establish a "closing fund" that would be used to recruit a large manufacturing plant to Brunswick County. The company, which has been recruited under the "Project Diamond" moniker, wants to set up shop at the Mid-Atlantic Industrial Rail Park on U.S. 74-76 near the Columbus County line. State Rep. Frank Iler, R-Brunswick, said on the House floor in late July that the company was poised to invest $500 million and create more than 1,000 jobs.

But the company won't come without some up front incentive money. North Carolina's inability to do that is why Caterpillar chose Georgia and Continental Tire picked South Carolina for their new plants instead of Brunswick County in recent years.

Other recruitment programs that could peter our include the state's popular Job Development Investment Grant (JDIG) program, which provides sustained annual grants to new and expanding businesses.

State Rep. Susi Hamilton has said legislative inaction could cost the state thousands of new jobs.

"Job creation in this state will not occur for 12 months," the Wilmington Democrat said earlier this week.

N.C. Commerce Secretary Sharon Decker also has been busy lobbying for the economic development provisions.

"We need jobs in North Carolina badly, and we need tools to bring those jobs home," she said on Wednesday.

The House is scheduled to reconvene at 5 p.m. Monday for two days, although Tillis said that could get pushed back a few days. The Senate is scheduled to go back into session at 4 p.m. Monday.

<p>The hopes of North Carolina keeping its competitive film incentive program and continuing with its popular historical preservation tax credits hung in the balance Friday as frantic end-of-session negotiations failed to overcome entrenched opposition to economic development programs from conservative Republicans.</p><p>The end result was a decision by the N.C. House to reconvene for two days next week, further extending what's supposed to be the General Assembly's "short" session, for more talks.</p><p>Considering the strong opinions on both sides, it isn't known if there is a middle ground.</p><p>A move supported by House Speaker Thom Tillis, R-Mecklenburg, to bring a conference bill that dealt primarily with economic development issues to the House floor was narrowly defeated late Friday afternoon. The move came after House members decided to modify the bill's language to better reflect the chamber's position.</p><p>The House has refused to approve legislation already passed by the Senate that would fund some economic development efforts, but pointedly doesn't include language to extend the state's film incentive and historic preservation tax credit programs.</p><p>But many Republicans said the revamped bill was still full of provisions and tied to other bills they didn't like. Some legislators also were upset that the language added to the bill hadn't been run by the Finance Committee first to gauge its impact on the state budget.</p><p>Wake County Rep. Paul Stam, one of the most powerful Republicans in the GOP-dominated House, called the bill – even with the recent House changes – a "turkey."</p><p>With the Senate showing little appetite to compromise and few bills left to add any language to regarding the film and historic preservation programs, supporters of the tax credit programs have been scrambling this week. Both incentive programs are set to expire at the end of the year, with the film incentives replaced with a $10 million grant program for the first six months of 2015 that proponents call woefully inadequate to keep North Carolina as a major player for film and television production work.</p><p>But it isn't just film jobs that Southeastern North Carolina could lose if the General Assembly can't agree on approving an economic development bill – something the GOP-led Senate and Gov. Pat McCrory, also a Republican, badly want.</p><p>The state needs funding included in the bill to establish a "closing fund" that would be used to recruit a large manufacturing plant to Brunswick County. The company, which has been recruited under the "Project Diamond" moniker, wants to set up shop at the Mid-Atlantic Industrial Rail Park on U.S. 74-76 near the Columbus County line. State Rep. Frank Iler, R-Brunswick, said on the House floor in late July that the company was poised to invest $500 million and create more than 1,000 jobs.</p><p>But the company won't come without some up front incentive money. North Carolina's inability to do that is why Caterpillar chose Georgia and Continental Tire picked South Carolina for their new plants instead of Brunswick County in recent years.</p><p>Other recruitment programs that could peter our include the state's popular Job Development Investment Grant (JDIG) program, which provides sustained annual grants to new and expanding businesses.</p><p>State Rep. Susi Hamilton has said legislative inaction could cost the state thousands of new jobs.</p><p>"Job creation in this state will not occur for 12 months," the Wilmington Democrat said earlier this week.</p><p>N.C. Commerce Secretary Sharon Decker also has been busy lobbying for the economic development provisions.</p><p>"We need jobs in North Carolina badly, and we need tools to bring those jobs home," she said on Wednesday.</p><p>The House is scheduled to reconvene at 5 p.m. Monday for two days, although Tillis said that could get pushed back a few days. The Senate is scheduled to go back into session at 4 p.m. Monday.</p><p><i></p><p><a href="http://www.starnewsonline.com/section/topic9924"><b>Gareth McGrath</b></a>: 343-2384</p><p>On <a href="http://www.starnewsonline.com/section/news41"><b>Twitter</b></a>: @Gman2000</i></p>